09/10/2023
Economic crisis. How do we deal with it? How do we recover from it?
Whenever we think of economic crisis, we think about how the media frames it. We think of GDP, deficits, debt, buyouts etc.
What we don't talk about is how we personally deal with and recover from it.
Don't get me wrong, talking about policies that can curb the impact of a crisis is important. But it doesn't help someone who is starting their career or someone with bills to pay.
So, given we have a possible crisis coming, let's look back on what we went through. Let's see what we can learn from the last one and thus hopefully do better next time.
I'll start. Let me know your lessons in the comments.
In 2008 the crisis caught me working as a waiter. I was making huge tips, but recklessly spending and lending other people money. I had no savings, I relied on recovering the money I lent and I was thinking it will only get better.
But of course, it did not. In less than a month, we had half the usual clients and I had to find a new place to work.
In about 8 months, I would work in 4 different bars, barely getting by, while everyone thought it was all going great.
Several times I ended up with shady customers that lead to very tense and dangerous situations. For 4 months I worked at a bar for less that the minimum wage, but working 14 hours per day, 6 days a week. Just making enough to pay rent and food.
And with all that effort, I ended up being fired because "I was not a team player" which meant that I didn't clean up the mess left by a colleague who was paid double.
At this point, I could deny reality and had to return to live with my parents.
By that point I had broadcast the lie that I was doing well financially and that I had 2 years of University under my belt, when in fact I was a dropout.
After admitting the new reality, I got 2 new jobs in my hometown, started saving up to start university and get back on track. 3 months later I found a secure job that helped me pay my studies, gave me enough free time to go the classes and volunteer.
I joined a student organization, I started learning, going to conferences and building a network. I said yes to any new experience and luckily I was back on my feet soon enough.
What have I learned?
1. Denial is not the way. If the situation is s& just say so. Staying in denial will only make you feel lonely and insecure.
2. Have savings to help you bounce back. And don't rely on lent money. They won't pay you back during a crisis.
3. Invest in your education. This will bring you the biggest return.
4. Join a community and network. The more contacts you make, the more opportunities will open up.
5. Pay the bills. If it means you have to Uber, just do it and leave your ego at the door. The quicker you get back in shape, the better.
6. Be patient. Things won't change overnight. A good harvest takes time, discipline and a little bit of luck.
May the odds be in your favor when the next crisis hits. May it lead you to growth